ICBA: Capital Reform Provisions Will Boost Economy

Washington, D.C. (October 27, 2011)—The Independent Community Bankers of America (ICBA) today thanked the House Financial Services Committee for advancing H.R. 1965, sponsored by Reps. Jim Himes (D-Conn.) and Steve Womack (R-Ark.), and H.R. 2167, introduced by Rep. David Schweikert (R-Ariz.). Both pieces of ICBA-advocated legislation will help small businesses access much-needed capital and act to reduce regulatory burdens on the nation’s more than 7,000 community banks.

“ICBA appreciates the House Financial Services Committee’s passage of this critical and timely legislation, which will undoubtedly help community banks continue to serve the needs of their customers on Main Street,” said Sal Marranca, ICBA chairman and president and CEO of Cattaraugus County Bank, Little Valley, N.Y. “These bills will increase the viability of community banks and their small business customers, who are the lifeblood of local economies and the bedrock of economic stability and prosperity.”

H.R. 1965 would raise the Securities and Exchange Commission shareholder registration threshold for banks and bank holding companies from 500 shareholders to 2,000. H.R. 2167 would raise the threshold to 1,000 for all companies and would not count “accredited investors” against the threshold.

“Targeted and reasonable regulatory relief can greatly boost economic growth allowing community banks and small businesses to more easily raise capital,” Marranca said. “These reforms just cleared by the Committee and other important regulatory-relief measures are advanced in the ICBA-advocated Communities First Act (H.R. 1697/S. 1600), which is gaining bipartisan support. The Communities First Act is a top priority for ICBA and the nation’s community banking sector.”